How Much Is Road Tax for Your Car in the UK? A Comprehensive Guide

Key Takeaway:

Your annual Vehicle Excise Duty (VED), commonly known as road tax, depends primarily on when your car was first registered, its CO₂ emissions (or engine size for pre-2001 vehicles), fuel type, and—if valued over £40,000 when new—the luxury car supplement.

Since 1 April 2025, all petrol, diesel, hybrid, and electric cars pay VED according to these rules.

1. Cars Registered on or After 1 April 2025 (First Licence Rates)

Every new car must pay its first 12 months’ VED up front. From April 2025, both conventional and zero-emission cars follow the same CO₂-based scale:

CO₂ Emissions (g/km)Petrol/Diesel/AF/EVDiesel non-RDE2*
0£10£10
1–50£110£130
51–75£130£270
76–90£270£350
91–100£350£390
101–110£390£440
111–130£440£540
131–150£540£1,360
151–170£1,360£2,190
171–190£2,190£3,300
191–225£3,300£4,680
226–255£4,680£5,490
Over 255£5,490£5,490

*Diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard pay the higher “Diesel non-RDE2” rate.

2. Cars Registered on or After 1 April 2017 (Standard Rates from Second Year Onward)

From the second year of ownership, all cars first registered on or after 1 April 2017 pay a flat annual VED, regardless of emissions:

Payment MethodPetrol/Diesel/AF/EV
Single 12-month payment£195
Single 12-month by Direct Debit£195
12 monthly instalments by Direct Debit£204.75
Single 6-month payment£107.25
Single 6-month by Direct Debit£102.38

Vehicles with an original list price over £40,000 pay an additional £425 supplement per year for five years (starting from the second licence).

3. Cars Registered Between 1 March 2001 and 31 March 2017 (CO₂ Bands A–M)

For vehicles in this period, VED is based on CO₂ bands. From April 2025, the zero-emission and low-emission cars in Band A now pay £20 annually rather than being exempt.

BandCO₂ (g/km)Annual VED
AUp to 100£20
B101–110£20
C111–120£35
D121–130£165
E131–140£195
F141–150£215
G151–165£265
H166–175£315
I176–185£345
J186–200£395
K*201–225£430
L226–255£735
MOver 255£760

*Band K includes very high-emitting cars registered before 23 March 2006.

All alternative-fuel vehicles (hybrids, LPG, biofuel) receive a £10 discount in each band.

4. Cars Registered Before 1 March 2001 (Engine-Size Bands)

Pre-2001 private vehicles and light goods vehicles pay VED based solely on engine capacity:

Engine Size12-Month VED6-Month VED
≤ 1,549 cc£220£121
> 1,549 cc£360£198

Direct Debit is available but increases the total cost (e.g. £378 over 12 instalments for > 1,549 cc).

5. How to Check Your Exact Rate

  • Note your car’s first registration date (V5C logbook).
  • Find its CO₂ emissions (vehicle spec or GOV.UK).
  • Refer to the appropriate table above.
  • If your car’s original list price exceeded £40,000, add the £425 supplement where applicable.

You can also check online via GOV.UK’s “Check vehicle tax” service using your registration number.

6. Paying and Penalties

  • Payment options: Annual, 6-monthly, or monthly Direct Debit (additional fees apply for instalments).
  • Requirements: Valid MOT (if over 3 years old) and insurance must be in place and verified electronically.
  • Driving untaxed: Fines start at £100; can increase to £1,000 and incur vehicle clamping or impoundment.

In Summary:

Road tax in the UK is no longer free for electric cars and now follows the same CO₂-based framework introduced in April 2025. By knowing your car’s registration date, CO₂ emissions (or engine size), and list price, you can determine exactly how much VED you’ll owe each year. Always double-check on GOV.UK for the most up-to-date rates before payment.

Author
Rachel Lacey
Rachel Lacey is an experienced writer specializing in personal finance. With 17 years at Moneywise, she now creates engaging, SEO-optimized content for leading publications like The Daily Telegraph, Times Money Mentor, NerdWallet UK, and more. A University of Sheffield graduate, Rachel excels at simplifying complex financial topics to empower readers. She also writes for reputable financial platforms, including Flow Cars Insurance, offering expert insights into car insurance and personal finance topics.

Leave a Comment